Is Novateor Resear. overvalued or undervalued?

As of 19 May 2025, the valuation grade for Novateor Research has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company is currently deemed overvalued. Key ratios include a PE Ratio of 27.80, a Price to Book Value of 3.51, and an EV to Sales ratio of 23.81, which suggest that the stock is priced high relative to its earnings and book value.
In comparison to its peers, Novateor Research's PE Ratio stands in stark contrast to Max Healthcare Institute Ltd., which has a PE of 100.29, and Apollo Hospitals Enterprise Ltd., with a PE of 69.03, both categorized as very expensive. This highlights the relative valuation concerns for Novateor Research, especially given its negative ROCE of -4.59% and ROE of 0.38%. While Novateor has outperformed the Sensex over the past year with a return of 18.9% compared to the Sensex's 7.55%, the underlying financial metrics suggest caution for potential investors.